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Delay in resolving Exxon audit opens door to more abuse – Economist Elson Low
…warns such a lapse sends dangerous signal to other oil companies
(Kaieteur News) – Economist Elson Low has slammed the Government of Guyana for what he described as a “totally unacceptable” delay in resolving the first oil audit dispute with ExxonMobil Guyana Limited (EMGL)—a lapse he warns could embolden other oil companies to follow suit.
Low has urged government’s immediate action on the matter. In an interview with Kaieteur News, the former Treasurer of the People’s National Congress Reform (PNCR) and ex-advisor to the Opposition Leader shared concerns over government’s failure to complete the first audit of ExxonMobil Guyana Limited (EMGL), completed over four years ago. The review of Exxon’s US$1.6B expenditure, incurred between 1999 and 2017 was conducted by a British firm, IHS-Markit. The Consultant handed over its revised report to the government since March 2021, advising that US$214M in costs was not properly accounted for.
Economist, Elson Low
Importantly, the 2016 Production Sharing Agreement (PSA) with Exxon sets specific timeframes for exchanges between the GoG and the contractor for the completion of the review process. This has not been adhered to as both parties have agreed to stretching the respective period for dialogue.
As such, Low argued, “Government’s lack of urgency regarding the hundreds of millions of disputed costs uncovered in the first audit is totally unacceptable. To hear that there is still no one appointed to review these disputed costs after years of public outcry is bizarre.”
Furthermore, the Economist believes this sets the stage for Guyana to be continuously abused by oil companies due to its failure to ensure swift closure on the first audit. “This sets a bad precedent for any future disputes as all oil companies can benefit from not paying monies due the Guyanese people for a prolonged period of time. This allows them to profit from allocating these resources to profit-making endeavours,” Low stressed.
The President of EMGL, Alistair Routledge recently revealed that there has been no agreement yet on the sole expert to settle the dispute with government.
Consequently, Low highlighted that while there will be interest earned on delayed dispute payments, until a ruling is made in that regard, Guyanese cannot benefit from such funding. To this end he noted that government is duty-bound to urgently pursue the disputed amount flagged in the first audit report as well as questionable expenditure flagged in the two additional audits of the company.
The Economist was keen to point out that the sum reclaimed in the audit process can be used to fund this country’s infrastructure projects rather than huge loans that carry interest.
Shifting his attention to the most recently completed audit of some US$19.6B, Low said government’s unwillingness to release the findings of the auditors also hints at a continuation of its preference for secrecy and stalling, rather than representing the interests of the state. He noted, “Transparency and efficiency is in the interest of Guyana and our government must do better than this given the enormous sums involved.”
It was reported that the third audit report was completed by the local consortium, VHE Consulting since March, 2025 however, that report has not been shared with the public.
Earlier this month, Natural Resources Minister, Vickram Bharrat told this newspaper that the Guyana Revenue Authority (GRA) was still locked in discussion with Exxon on the findings of the third audit, for the period 2021 to 2023.
To this end, he was hesitant to disclose the initial disputed sum flagged by the auditors. Bharrat explained, “The auditors would flag a figure and then it goes back to the company and the company might be able to produce evidence or receipts for everything so it keeps adjusting all the time so it’s no use I give you a figure and then it might raise questions all around.”
The minister urged that the GRA be granted a few more days to complete the process with the oil company. “Remember they would give the company time to provide evidence of spending and so,” he said while assuring that the third audit report will be made public on the website upon completion of the ongoing exchanges between Exxon and the GRA.
It should be noted that the second audit is also pending final completion. VHE Consulting, the local consortium, were tasked with reviewing some US$7.2B in costs this time and found US$65.1M incorrectly charged during the period 2018 and 2020. That report was handed over in November 2024.
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